Spreading the Golden Arches

But Semyonov is the fast food chain’s vice-president in Russia and the CIS, and his daily trips are not just market research but also for convenience, he says.

His office is located just above one of the stores on Krasnaya Presnya Ulitsa, he told The Moscow News as he sat down to lunch with a tray full of fries and a Big Mac.

“Russia is our top market for capital expenditures,” the company said in its results for the first half of 2010 as the country came in for special praise.

Fast food resilient

Payment via bank cards may be followed by phone-in ordering The fast food market has proved resistant to the crisis, and while the chips have been down for most companies, Russia saw 33 more golden arches in 2009 – and can expect another 40 this year.

“Even before the crisis we were trying to make our decisions with a longer-term view,” said Semyonov. “We never tried to maximize our profit with short-term decisions, and that’s why we came through the crisis in good shape.”

In the spirit of the times, McDonald’s has also embarked on a modernisation drive, announcing that it will start taking payments with bank cards. The chain also plans to expand Wi-Fi connections to more of its restaurants and is eyeing further innovations.

“Mobile technology is developing really fast, and I do not exclude that at some point in the future ordering or payment could be done by mobile phone,” said Semyonov.

Going local

McDonald’s has succeeded in making the experience more relevant to it its customer base in Russia. Last year’s beef “a la Russe” got the customers in with traditional Russian rye bread, and it is set for a comeback this autumn.

The company is now looking at adapting local pirozhki – savoury pies – to the menu to further tailor it to local taste buds.

The crisis has also moved the company closer to domestic suppliers. The managed devaluation of the rouble at the end of 2008 and beginning of 2009 caused a sharp spike in the cost of imported ingredients, and Semyonov praised their links to local firms.

While the Russian management have tried to make the menu as close to their customers as possible, the fundamental principles of the business remain the same.

But McDonald’s is also facing the same problems it faces worldwide, with the accusation so dramatically demonstrated in “Supersize Me”, that its food is not that healthy.

“McDonald’s are superb marketers, who are only in this for one reason – to sell more energy-dense, nutrient-poor foods,” Mike Daube, the head of the Public Health Association in Australia, told medical website BMJ.

Like in many countries, Russia has expanded its menu and included salads in an attempt to shake off its fatty image, though many complain that this is not enough.

Competing with rivals

The success of McDonald’s – as well as Pepsi and Coca-Cola, who recently praised the growing market – has got rival fast food chains looking for a quick buck.

Wendy’s recently announced the opening of over 180 new stores in Russia, while Burger King can now be found in Moscow.

“We always expect competition, but more importantly we always try to compete with ourselves to become better,” Semyonov said.